Correlation Between SentinelOne and Wuxi Xinhongye
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By analyzing existing cross correlation between SentinelOne and Wuxi Xinhongye Wire, you can compare the effects of market volatilities on SentinelOne and Wuxi Xinhongye and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SentinelOne with a short position of Wuxi Xinhongye. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Wuxi Xinhongye.
Diversification Opportunities for SentinelOne and Wuxi Xinhongye
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Wuxi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Wuxi Xinhongye Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xinhongye Wire and SentinelOne is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SentinelOne are associated (or correlated) with Wuxi Xinhongye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xinhongye Wire has no effect on the direction of SentinelOne i.e., SentinelOne and Wuxi Xinhongye go up and down completely randomly.
Pair Corralation between SentinelOne and Wuxi Xinhongye
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.76 times more return on investment than Wuxi Xinhongye. However, SentinelOne is 1.32 times less risky than Wuxi Xinhongye. It trades about 0.16 of its potential returns per unit of risk. Wuxi Xinhongye Wire is currently generating about 0.01 per unit of risk. If you would invest 1,722 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 1,086 from holding SentinelOne or generate 63.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
SentinelOne vs. Wuxi Xinhongye Wire
Performance |
| Timeline |
| SentinelOne |
| Wuxi Xinhongye Wire |
SentinelOne and Wuxi Xinhongye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Wuxi Xinhongye
The main advantage of trading using opposite SentinelOne and Wuxi Xinhongye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Wuxi Xinhongye can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Wuxi Xinhongye will offset losses from the drop in Wuxi Xinhongye's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Wuxi Xinhongye vs. Inspur Software Co | Wuxi Xinhongye vs. Dr Peng Telecom | Wuxi Xinhongye vs. Yingde Greatchem Chemicals | Wuxi Xinhongye vs. CICT Mobile Communication |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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